Sesame Workshop
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For kids of a certain age — think 9 to 15 — options for enrichment are somewhat limited to school, sports, and camps, while the ability to make money is largely non-existent.
A new startup called Mighty wants to provide them with a new alternative through a platform it’s building that, like a kind of Shopify for kids, enables younger kids to open their own store online and hopefully learn a bit in the process. In fact, Mighty — led by founders Ben Goldhirsh, who previously founded GOOD magazine, and Dana Mauriello, who spent nearly five years with Etsy and was most recently an advisor to Sidewalk Labs — sees itself as smack dab in the center of fintech, ed tech, and entertainment.
As often happens, the concept derived from the founders’ own experience. In this case, Goldhirsh, who has been living in Costa Rica, began worrying about his two daughters, who attend a small school and he feared might fall behind their stateside peers so began tutoring them after school. He says he was using Khan Academy among other software platforms, but their reaction wasn’t exactly positive.
“They were like, “F*ck you, dad. We just finished school and now you’re going to make us do more school?’”
Unsure of what to do, he encouraged them to sell the bracelets they’d been making online, figuring it would teach them needed math skills, as well as teach them about startup capital, business plans (he made them write one), and marketing. It worked, he says, and as he told friends about this successful “project-based learning effort,” they began to ask if he could help their kids get up and running.
Fast forward and Goldhirsh and Mauriello — who ran a crowdfunding platform that Goldhirsh invested in before she joined Etsy — say they’re now steering a still-in-beta startup that has become home to 3,000 “CEOs” as Mighty calls them.
The interest isn’t surprising. Kids are spending more of their time online than at any point in history. Many of the real-world type businesses that might have once employed young kids are shrinking in size. Aside from babysitting or selling cookies on the corner, it’s also challenging to find a job before high school, given the Department of Labor’s Fair Labor Standards Act, which sets 14 years old as the minimum age for employment. (Even then, many employers worry that their young employees might be more work than is worth it.)
Investor think it’s a pretty solid idea, too. Mighty recently closed on $6.5 million in seed funding led by Animo Ventures, with participation from Maveron, Humbition, Sesame Workshop, Collaborative Fund and NaHCO3, a family office.
Still, building out a platform for kids is tricky. For starters, not a lot of 11-year-olds have the tenacity required to sustain their own business over time. While Goldhirsh likens the business to a “21st century lemonade stand,” running a business that doesn’t dissolve at the end of the afternoon is a very different proposition.
Goldhirsh acknowledges that no kid wants to hear they have to “grind” on their business or to follow a certain trajectory, and he says that Mighty is certainly seeing kids who show up for a weekend to make some money. Still, he insists, many others have an undeniably entrepreneurial spirit and says they tend to stick around. In fact, says Goldhirsh, the company — aided by its new seed funding — has much to do in order to keep its hungriest young CEOs happy.
Many are frustrated, for example, that they currently can’t sell their own homemade items through Mighty. Instead, they are invited to sell items like hats, totes, and stickers that they customize and which are made by Mighty’s current manufacturing partner, Printful, which then ships out the item to the end customer. (The Mighty CEO gets a percentage of the sale, as does Mighty.)
They can also sell items made by global artisans through a partnership that Mighty has struck with Novica, an impact marketplace that also sells through National Geographic.
The idea was to introduce as little friction into the process as possible at the outset, but “our customers are pissed — they want more from us,” says Goldhirsh, explaining that Mighty fully intends to one day enable its smaller entrepreneurs to sell their own items, as well as services (think lawn care), which the platform also does not support currently.
As for how it makes money, Mighty plans to layer in subscription services eventually, as well as collect transaction-based revenue.
It’s intriguing, on the whole, though the startup could need to fend off established players like Shopify to should it begin to gain traction.
It’s also conceivable that parents — if not children’s advocates — could push back on what Mighty is trying to do. Entrepreneurship can be alternately exhilarating and demoralizing, after all; it’s a roller coaster some might not want kids to ride from such a young age.
Mauriello insists they haven’t had that kind of feedback to date. For one thing, she says, Mighty recently launched an online community where its young CEOs can encourage one another and trade sales tips, and she says they are actively engaging there.
She also argues that, like sports or learning a musical instrument, there are lessons to be learned by creating a store on Mighty. Storytelling and how to sell are among them, but as critically, she says, the company’s young customers are learning that “you can fail and pick yourself back up and try again.”
Adds Goldhirsch, “There are definitely kids who are like, ‘Oh, this is harder than I thought it was going to be. I can’t just launch the site and watch money roll in.’ But I think they like the fact that the success they are seeing they are earning, because we’re not doing it for them.”
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For better or worse, tablets and smartphones have become a cornerstone of how many younger children pass the time. Today, a company that builds literacy and other educational apps to help make that time more worthwhile is announcing a large round of funding from a number of strategic backers to move into the next phase of its growth, building not just apps but a comprehensive learning platform.
BEGiN, the startup behind the Homer early learning program aimed primarily at kids between the ages of two and eight, has raised $50 million in a Series C round of funding, money that it plans to use to, in the words of CEO Neal Shenoy (who co-founded the company with Stephanie Dua), create a “systematic experience” in learning.
The startup has been around since 2013 and got its start with literacy — it says that its reading apps are currently the most popular for children under age five in the U.S. App Store — which remains its core subject area, but it has also expanded into other subject areas and plans to take that further.
“We are launching the industry’s first comprehensive early learning program,” he said in an interview. “And so from a curriculum perspective, this will extend beyond reading to include math, critical thinking, creativity, and socio-emotional learning, we will deliver this learning, these experiences, across digital, physical, tangible product, and in class mediums, we will focus on both serving the child and the parent and the relationship between them says the parent is the child’s first teacher.”
The round includes a number of strategic investors that will help bring this together. The backers include LEGO Ventures, Sesame Workshop, the principal investor in Gymboree Play & Music, 3One4 Capital, Trustbridge Partners and Interlock Partners. In addition to the $50 million, Liquidity Capital is also contributing $25 million in trajectory-based funding for further growth. The strategic backers plan to help build the curriculum, the products and the distribution for the new program, he said.
The valuation of Homer, and BEGiN itself, is not being disclosed, but the company said that it already has hundreds of thousands of subscribers and generates tens of millions of dollars in revenues.
The funding news and strategic expansion comes at a critical time in the educational industry, and e-learning in particular.
Children’s educational apps — and taking even just those focused on early learning (Age of Learning is another leader in this segment of the market) — have been around for as long as the internet itself. But they have always existed in conjunction with a host of more conventional resources, such as nurseries and schools, playgroups and other activities, and general socialization. The global health pandemic, however, has changed all that for many people: many families, kids included, are spending more time at home and away from teachers and the (real life) social networks that play a part in how they develop.
That’s put a huge emphasis on rethinking how tech-based tools, starting with gadgets like tablets and software like apps, can make up the difference, for now or maybe even for longer, to make sure that kids continue to learn, but also feel engaged and stimulated at a time when a lot of options for doing that have been reduced.
Joining up app makers with those who make educational physical objects is a not a new thing per se: “educational toys,” as any parent knows, are a dime a dozen in terms of supply (if not cost… they can be expensive). But it’s interesting to see toy makers joining up with those who build entertainment content and other products for children for an even bigger-picture approach to identifying and building to address the challenge of how best to deliver some aspects of early-years education.
Indeed, LEGO Ventures is a newish effort from the Danish modular toy maker, founded to help the company, now more than 70 years old, step into the next phase of how children learn and keep themselves entertained.
“HOMER’s vision and approach to playful learning fosters curiosity and collaboration in children that aligns closely with LEGO Ventures’ investment ethos supporting founders and companies in bringing the LEGO idea of learning-through-play to life,” said Jamie Beaumont, managing partner, LEGO Ventures, in a statement. “We look forward to working with Neal and the excellent team he has built, and supporting HOMER as they grow and scale their purposeful play offerings across hands-on, in-person and digital experiences.”
As with e-learning companies targeting other age groups, the startup has seen a huge boost in business in the last several months, with a 280% increase in annual subscriptions, 230% increase in website subscriptions, and children accessing 30% more lessons than this time last year. (Overall, the company has had 80%+ year-over-year growth since launch.)
“With its focus on research and kid-centric design, and expansion to embrace the whole child curriculum, HOMER’s approach reflects the mission of Sesame Workshop to help kids grow smarter, strong and kinder,” said Steve Youngwood, president of Media and Education, and chief operating officer of Sesame Workshop, in a statement. “We’re excited to support HOMER’s growth and to look for further ways to partner with them to give young children the best possible start at a critical time of their learning and development.”
Additional reporting Natasha Mascarenhas
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Device addiction plagues us all — even Apple CEO Tim Cook. But children with phones and tablets are even more susceptible to the lures of apps and games, which often use psychological tricks to keep users logging in and regularly returning. A new PSA from Sesame Workshop and advocacy organization Common Sense aims to address kids’ unhealthy use of mobile devices by focusing on one particular problem: devices at the dinner table.
This is not the first time the #DeviceFreeDinner campaign has run — previous years’ spots featured Will Ferrell as a “distracted dad” on his phone at the table, ignoring his family’s conversations.
But this time around, the organization is teaming up with Sesame Workshop, which is lending its characters to a new PSA. The spot will feature the “Sesame Street” muppets modeling healthy mobile phone behavior by putting their devices away.
Phones are shut up in drawers, tablets placed on shelves, other devices are put in handbags — and, you know, thrown into garbage cans and stashed in pumpkins, as the case may be.
The muppets then gather around a table and happily chatter until they notice Cookie Monster is still on his phone, texting. (Don’t worry, their disapproval sees him eating the device in the end.)
The idea, explains kids advocacy organization Common Sense, is to raise awareness around media balance and encourage families to make the most of their time together.
It comes at a time when now one-third of kids ages 0 to 8 “frequently” use mobile devices, the nonprofit explains. But taking a break from devices is shown to have positive benefits, ranging from better nutrition and focus at home to fewer problems at school, Common Sense says.
Plus, it notes, simply putting the phone down is not enough — it shouldn’t be at the table at all, as research has shown that even the presence of a phone on the table can hurt the quality of conversations.
While Common Sense puts out a lot of material for children and families like this, Sesame Workshop’s involvement on the new PSA is particularly interesting given the company’s recent connection with Apple.
A new Sesame Workshop-produced show set to air on Apple’s soon-to-launch streaming service will teach kids coding basics — an agenda Apple regularly pushes to get its programming language, Swift, into the hands of the next generation of coders.
In the show, the same “Sesame Street” characters who today are telling kids to put down their phones will instead tout the joys of coding to the preschool set.
The juxtaposition of a programming-focused Apple kids’ show and the new PSA are a perfect example of how complicated the issues around kids on devices have become. On the one hand, parents want to encourage their children to pursue STEM subjects — which often requires kids to regularly use computers and other devices to practice new skills, like coding with MIT’s Scratch or building for Minecraft. But on the other hand, parents see that when kids are given devices, addiction soon follows.
The real question for parents may be, instead, whether kids should have devices at all — or whether they should take their cues from tech billionaires and Silicon Valley parents who are ripping devices from their own children’s hands like they’re the modern-day equivalent of sugary breakfast cereal.
Perhaps Sesame Workshop should have chosen a side on this issue, rather than teaming with the billion-dollar company that’s now trying to distance itself from fault with regard to the device addiction problem at the same time it runs PSAs about kids’ device addiction.
Or maybe it’s just as confused at the rest of us are over where to draw the line.
Starting today, the new “Sesame Street”-themed PSAs will be distributed across networks and platforms, including NBC, Fox, Xfinity, Comcast, Charter, Cox, National Geographic, NCM, PBS, Univision, Telemundo, HITN and Xfinity Latino.
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If I had to choose a sound to identify the second year of my daughter’s life it would probably be one of the collaborations between Sesame Street superstar Cookie Monster and one of the hot pop stars of the day. Although “Me want it (but me wait)” will never win any lyricist awards, it was catchy, taught patience and provided the kind of cultural crossover that has kept… Read More
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